Tamarac homeowners among 693 in South Florida hit with debt letters

Leave it to FEMA to botch another recovery effort. This time, the Federal Emergency Management Agency isn't dealing with a natural disaster but a self-inflicted one, trying to belatedly recoup millions of dollars in improper payments after 2005 hurricanes Wilma, Katrina and Rita.

Of the $643 million in potential overpayments FEMA has identified from past disasters, about 1 percent (roughly $6.4 million) involve South Floridians.

It's a worthwhile effort to protect taxpayer money, but even when FEMA tries to make things right, the agency gets things wrong.

Take the case of Sheryl and Daniel Rosner of Tamarac.

In June, the Rosners got a notice from FEMA saying they owed $3,225.67 for a claim they filed after Hurricane Wilma in October 2005.

They are among 693 South Florida homeowner who have received FEMA debt notices related to Wilma payments.

"I got really scared when I got that letter," Sheryl Rosner told me last week. "Especially since we already repaid $2,400 a few years ago."

But that earlier repayment — after a FEMA error resulted in an overpayment on their original claim — hadn't been reflected on the latest notice.

"It's very screwed up," Sheryl Rosner said. "After all this time, they hit you up for more money, and you don't even know what it's for."

Rosner's son Jason, an attorney, called the FEMA recoupment helpline — 1-800-816-1122 — for more information. He said the earlier repayment wasn't credited, and the agency also was seeking $825 repayment for a chain saw and electric generator, items that were eligible for reimbursement at the time.

The Rosners didn't have electricity for three weeks after Wilma. Even though thousands of South Floridians got reimbursed for chain saws and generators — a controversial policy that has since been revised — Jason Rosner said he was told his parents' claim had been rejected because of a post-storm inspection.

"An inspector came by the neighborhood in February 2007 — 16 months after the storm — and found that there were no trees down and the electricity was working," Jason Rosner said. "How ridiculous is that?"

The Rosners plan to file an appeal by the Aug. 29 deadline.

FEMA spokeswoman Rachel Racusen said she couldn't discuss specifics of the Rosners' case because of privacy laws, but she encouraged any South Floridians who dispute their "notices of debt" to contact FEMA and file an appeal.

FEMA took a lengthy hiatus from trying to recover improper payments because of a lawsuit filed by Hurricane Katrina victims. FEMA suspended those efforts in mid-2007 and didn't resume until earlier this year. The lawsuit was resolved in 2009, but FEMA spent the last two years revamping the recoupment and appeals procedures.

FEMA began mailing debt notices to up to 160,000 people in the spring, mostly to those in Gulf states impacted by Katrina and Rita. But the long delay — with some disaster victims not aware of potential problems until nearly six years after getting aid — has caught some people by surprise.

Said Racusen: "Our priority when developing this new process was to make sure disaster survivors had complete and clear information about the reasons for the debt described in their notice."

Sheryl Rosner laughed when she heard that.

"It was totally the opposite — the letter was very confusing, very generic," Rosner said. "They just plopped my name and an amount in there — and the amount was buried on a back page."

At a congressional hearing earlier this year, a FEMA official described the recoupment process as "challenging, but legally required." The official couldn't say how much the effort would cost, or how much money might be recouped.

Sheryl Rosner said she appreciated getting FEMA money after the storm, but she doesn't have much confidence in the agency.

In early 2007, the Rosners repaid $2,400 after FEMA erroneously overpaid them to replace storm panels on their home. They had two panels, but FEMA reimbursed them for 12. The Rosners were eligible for the home repair because Sheryl is disabled.

"I almost paid twice for their mistakes," Sheryl Rosner said. "There should be a time limit on how long they can come after you — five or six years after a storm is crazy. They're asking for money back from some people who don't have any money."